nwt cangrow report - aurora research...

NWT CANGROW REPORT

Assessing the Feasibility of Establishing a Commercial

Greenhouse in Norman Wells, NT Prepared by: Kimberley Sellwood & Jessica Dutton

April 2016

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Executive Summary This report provides the results of the NWT CanGrow Greenhouse Feasibility study for the Norman Wells

case study. The feasibility study adapted tools and techniques for designing a commercially viable

greenhouse for use in a northern setting. The study focused on addressing the community first –

including local preferences, demand and growing conditions – and developing greenhouse design and

business model planning around these community factors. The research team used in-depth feasibility

analysis to develop recommendations for operating a successful commercial greenhouse in each

community.

This report uses the data collected in Norman Wells to assess community readiness, make design

recommendations, calculate the commercial feasibility of the endeavor, and assess the contributions

that a commercial greenhouse can make as a social enterprise. The results reported refer to the first

year of the proposed operation and guidance for expanding the operation in future years is provided

throughout the report.

The proposed greenhouse would be 2160 sq ft. Hydroponic systems with built-in drip irrigation would be

used to grow crops and radiant heating would be used to maintain temperature. A forced air ventilation

system is required to circulate air and maintain temperature.

The report finds that a moderate revenue could be generated by a commercial greenhouse in Norman

Wells. The most significant costs in the first year will be start-up costs. A large capital investment is

recommended to establish the greenhouse and install an energy efficient radiant heating system. The

proposed greenhouse would have the capacity to extend the growing season, offset imports and

generate $59,656 in profit from sales in the first year.

Recommendations discussed include:

1. Greenhouse Design

The proposed greenhouse is a 30ft by 72ft by 18ft arched greenhouse with 10ft sidewalls,

polycarbonate end walls and double door entryway with a polyethylene glazing.

2. Crop Selection

While the greenhouse design allows for plenty of room for expansion, the recommendation is to start

with 8 -10 crops: tomatoes, bell peppers, cucumbers, basil, cilantro, thyme, baby spinach, mixed

greens, butter lettuce and romaine.

3. Growing Schedule

The greenhouse design and proposed crops would be best served by a growing season that starts in

April and ends in October.

4. Markets

In its first year, the greenhouse is designed to grow enough produce to supply local catering company

(Royal Mackenzie Catering) and a weekly Community Supported Agriculture (CSA) box for about twenty

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members. In future years, the CSA membership can be expanded.

5. Heating

Two heating systems have been assessed for feasibility: forced air and radiant heat. If the capital money

is available radiant heat is strongly recommended to reduce energy costs.

6. Growing System

Hydroponic vertical growing towers and bato buckets are recommended because soil is not a readily

available resource in Norman Wells, and shipping enough soil for a greenhouse of this size would be

less efficient than growing without soil.

7. Bedding Plants

Bedding plants are a great source of revenue, as they are sold early in the year at a profit, leaving room

to start other crops. It should be noted that a spring bedding plant sale would compete with the

existing commercial greenhouse’s spring bedding plant sale.

8. Raised Beds

Permafrost zones vary widely in Norman Wells, therefore raised beds would be required for in-ground

growing. While there is high demand for root vegetables, like potatoes, carrots, and onions, raised beds

are not an efficient growing option for a greenhouse that would have to ship soil.

The study concludes that a commercial greenhouse designed according to the proposed model could be

feasible in Norman Wells, particularly if funding was accessed to assist with start-up costs, especially

equipment and capital. There is enough local support and demand for fresh produce, and it is possible

to design a greenhouse that will be highly productive without accumulating high annual costs.

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Table of Contents…

Table of Contents Executive Summary ...................................................................................................................................... 1

Introduction .................................................................................................................................................. 4

Project Overview ....................................................................................................................................... 4

Reading the Report ................................................................................................................................... 4

Part 1: Assessing Community Readiness ..................................................................................................... 5

Investigating the Market ........................................................................................................................... 5

Estimating Demand ................................................................................................................................... 6

Bedding Plants........................................................................................................................................... 7

Pricing Produce ......................................................................................................................................... 8

Part 2: Design Planning for a Feasible Greenhouse .................................................................................. 11

Growing Systems ..................................................................................................................................... 11

Glazing and Framing ................................................................................................................................ 12

Temperature Needs ................................................................................................................................ 13

Light Needs.............................................................................................................................................. 14

Water Needs ........................................................................................................................................... 14

Energy Needs .......................................................................................................................................... 14

Part 3: Accounting for a Feasible Greenhouse .......................................................................................... 16

Start-up Costs .......................................................................................................................................... 16

Consumable Costs ................................................................................................................................... 17

Fixed Costs .............................................................................................................................................. 17

Projected Sales ........................................................................................................................................ 18

Total Costs and Revenues ....................................................................................................................... 19

Part 4: Commercial Greenhouses and Social Enterprises ......................................................................... 20

Local Economies ...................................................................................................................................... 20

Healthy Eating ......................................................................................................................................... 20

Sustainable Food Systems ....................................................................................................................... 20

Recommendations ..................................................................................................................................... 21

Appendices ................................................................................................................................................. 22

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Introduction Project Overview

The Aurora Research Institute developed the NWT CanGrow

Greenhouse Feasibility Study to find out whether it is feasible to

operate a commercial greenhouse in the Northwest Territories

(NWT). NWT communities are interested in improving food

security, increasing access to fresh and healthy produce,

encouraging positive dietary choices and creating economic

opportunities in local food production. Community growing

initiatives have expanded across the north in recent years and a

community of growers has emerged to support the budding

NWT agricultural shift.

This study was supported by the Canadian Northern Economic Development Agency and the

Government of the Northwest Territories Department of Industry Tourism and Investment. Like

ARI, both agencies are interested in how commercial greenhouses can improve food security,

economic opportunity and quality of life in NWT communities.

The feasibility study adapts tools and techniques for designing a commercially viable for use in a

northern setting. The study tools are flexible enough to accommodate the differences between

communities, which range from southern boreal to the high arctic. The feasibility study is focused on

addressing the community first – including local preferences, demand and growing conditions – and

developing greenhouse design and business model planning around these community factors. The

research team examined two case studies – Inuvik and Normal Wells – and used in-depth feasibility

analysis to develop recommendations for operating a successful commercial greenhouse in each

community.

In February 2016, Kimberley Sellwood conducted data collection in Norman Wells to more accurately

understand the local conditions, gather information about community readiness, and seek stakeholder

input on the potential for a commercial greenhouse in the community. This report uses the data

collected in Norman Wells to assess community readiness, make design recommendations, calculate the

commercial feasibility of the endeavor, and assess the contributions that a commercial greenhouse can

make as a social enterprise.

Reading the report

This report is intended for individuals or organizations in Norman Wells who may be involved with or are

considering commercial greenhouse growing. This report is divided into four main parts: 1) Community

Readiness, 2) Design Planning for a Feasible Greenhouse, 3) Accounting for a Feasible Greenhouse, 4)

Greenhouses as Social Enterprise. The information provided in this document outlines the most feasible

production schedule based on the feedback about produce needs, as sourced from community

members, food retailers, organizations and institutions who are key players in the local food economy. It

proposes a greenhouse design that can accommodate the production schedule that the community

requires. It provides an overview of the projected costs and revenues that can be expected from the

proposed greenhouse. Finally, the report considers the wider benefits that a commercial greenhouse

can have within the community, as reported by local stakeholders.

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Part 1: Assessing Community Readiness The benefits of a local greenhouse are often quite apparent to those who hope to establish

greenhouses in NWT communities. The community readiness assessment explores whether there

is demand for a greenhouse in the wider community and whether the local markets can support

the proposed operation.

Investigating the Market

Surveys and interviews were employed to explore the potential produce markets in Norman Wells. An

online survey was circulated on Facebook and in-person to determine demand for fresh produce and

interest in supporting a commercial greenhouse in the community. In total 91 surveys were collected,

and interviews were conducted with the two grocery stores, one catering company, and the K-12 school

that administers a subsidized foods program.

Even though the produce prices in Norman Wells are exceptionally high compared to more accessible

regions in the north, community members surveyed still indicated they would be willing to pay a bit

more for fresh, locally grown produce.

Royal Mackenzie Catering is a high volume catering company providing meals for 200 people a day at

four locations. The owner reports that they order 1 ½ pallets of produce twice a week. Royal Mackenzie

currently orders produce from Ramparts, but would be interested in amending her produce order to

support a commercial greenhouse in Norman Wells.

Norman Wells residents who responded to the survey were strongly in favour of purchasing locally.

Community Supported Agriculture (CSA) memberships provide an opportunity for community members

to support local agriculture and receive a weekly box of fresh produce. A CSA is an agreement made

between the grower and the customer to purchase a weekly subscription of produce. The rate for the

veggie box is set in advance and full payment is taken at the beginning of the season, when growers

need a large injection of funds to float seed and supply purchases. Weekly vegetable subscriptions are

not only a consistent source of revenue, but can be expanded annually until your greenhouse achieves

its growing capacity.

While the other local restaurants were not available to participate in the large volume customer

interviews due to time constraints, it is advisable that a local grower pursue contracts with these

markets. If the grower is able to come to an agreement, with the local restaurants amending crop

production for the first year in lieu of a CSA membership is advisable.

The local grocery stores also provided feedback. The produce manager at the Northern store reported

that, as a chain grocery store, they would not likely be able to purchase locally produced food. There is

an opportunity for further discussion with upper management, once the greenhouse has a few seasons

of production data demonstrating its capacity to provide fresh, consistent volumes of produce. In terms

of market share, the Northern brings in two pallets of produce twice a week.

Ramparts, the independently owned grocery store in Norman Wells, brings in one pallet of produce

twice a week. The produce manager reported that there may be an opportunity to supply the grocery

store if the cost was competitive with southern suppliers, but the final decision would rest with the

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owners. While the store is not included in the production schedule proposed in this report, excess yields

at the end of each week could be sold to the store at below direct sale value.

Norman Wells does not have a local farmer’s market. However, it would be just as effective for a

greenhouse operation to establish its own on-site, direct sales market on the weekend to sell excess

crops after all other market obligations have been fulfilled.

Table 1: Selected results from online community readiness survey (Norman Wells, NT)

Estimating Demand

Survey and interview data were analyzed to determine which markets are the most viable for immediate

development, as well as those that do not seem like they would generate a reasonable revenue stream.

In Norman Wells, the best market to supply in the first year of business, would be the local, large

volume catering company Royal Mackenzie Catering. Also, with the goal of increasing its membership

every year, a weekly vegetable subscription for 20 members is also incorporated into the crop

production schedule.

Survey results show that

community members are

interested in some

greenhouse produce, but

also some produce that is

better grown in-ground

growing or raised beds.

Greenhouse operations

may consider adding beds

inside or outside to expand

capacity to support other

crops.

Statement Agree OR Strongly Agree

Neutral Disagree OR Strongly Disagree

Very fresh fruits and vegetables are not usually available for me to buy.

70% 15% 15%

I would be willing to pay a little more for very fresh produce. 66% 16% 18%

I will buy fruits and vegetables wherever they are the cheapest, even if the quality is lower.

8% 17% 75%

I think fruits and vegetables should be grown locally. 58% 33% 10%

I would support a local business that sells fresh fruits and vegetables.

95% 4% 1%

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Table 2: Likelihood of purchasing produce by crop (Norman Wells, NT)

Based on the results of the customer demand surveys and the reported demand from local restaurants,

the proposed crops for the Norman Wells greenhouse are: tomatoes, cucumbers, bell peppers, herbs,

spinach, mixed greens, green lettuce, and romaine.

Bedding Plants

Seventy-five percent of those surveyed said they were unaware that bedding plants were available for

sale in the spring from the local commercial greenhouse. Fifty percent of those surveyed said they

would buy bedding plants if they were available for purchase. This suggests a need for more strategic

marketing, but also indicates there is room for growth. A commercial greenhouse could amend their

production schedule to sell bedding plants early in the season, before they begin selling produce. There

is a lot of opportunity in this market, as a wide selection of vegetable, herb and flower bedding plants

are in demand.

Item Always &

often Seldom &

never Top ten crop?

Top five crop?

Beans 62% 38%

Beets 43% 57%

Broccoli 96% 4% Yes Yes

Cabbage 57% 43%

Cauliflower 78% 22%

Cucumbers 86% 14%

Carrots 93% 7% Yes Yes

Eggplant 22% 78%

Garlic 82% 18%

Kale 64% 36%

Kohlrabi 21% 79%

Leek 34% 66%

Lettuce 93% 7% Yes

Mixed Greens 95% 5% Yes Yes

Onions 94% 6% Yes Yes

Peas 80% 20%

Peppers (bell) 92% 8% Yes

Peppers (hot) 55% 45%

Potatoes 91% 9% Yes

Radishes 33% 67%

Spinach 87% 23% Yes

Swiss Chard 30% 60%

Tomatoes 89% 11% Yes

Turnips 54% 46%

Zucchini 65% 35%

Strawberries 92% 8% Yes Yes

Fresh Herbs 83% 17%

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Table 3: Bedding plants survey results (Norman Wells, NT)

Item Very Likely &

Somewhat likely Somewhat unlikely & not likely

Never

Annual flowers for pots and planters 57% 35% 8%

Annual flowers for a flower bed 52% 34% 14%

Perennial flowers 57% 31% 12%

Vegetables for a home garden 62% 29% 9%

Vegetables for a home greenhouse 55% 34% 11%

Herbs 77% 17% 94%

Berry bushes 56% 31% 13%

Shrubs for landscaping 28% 56% 16%

Trees for landscaping 28% 54% 18%

Pricing Produce

Despite the already high prices of produce for sale in Norman Wells, more than half of the residents

surveyed said they would be willing to pay a little bit more for fresh produce and only five percent of

those surveyed felt the produce available is fresh (see Table 1). Generally, in the first year of operation,

the commercial greenhouse need only to set prices that are close to the prices offered by current

vendors in order to be competitive.

Produce in Norman Wells is in flown in twice a week. Both grocery stores reported very little lost

revenue due to spoilage, but some community members reported produce tends to be soggy, as it is

known to freeze during transportation. For this study, Ramparts and Northern produce prices were

used as the benchmark. High-value or specialty crops, such as herbs and mixed greens are hard to

transport up north, as they freeze easily. Therefore they can be sold for a premium, because they will be

harvested and delivered within 24hrs; making them of the highest nutrient content and freshest

produce available to the community.

Table 4: Local market prices and proposed greenhouse pricing (Norman Wells, NT)

The response from Norman Wells was overwhelmingly supportive of a commercial greenhouse. The key

to moving forward is to ensure the crops made available by the greenhouse reflect the demand reported

by the community. A schedule has been developed based on the information gathered in this section.

Appendix C contains planning charts for each market that specify how much of each crop that market will

consume each week throughout the growing season. Appendix D shows the weekly demand for each

Crop type Unit type Ramparts Grocery Northern Store Commercial Greenhouse

Tomatoes Pound $12.59kg 47.99kg $10k/$22lb

Bell Peppers Pound $7.30kg 11.79kg $10.88kg/$24lb

Cucumber, English Fruit $4.29 $4.09 $4.50ea

Herbs Gram n/a n/a $6/28gr/1oz

Spinach Pound $3.99/bag $7.19 $17lb

Mixed Greens Pound $4.99 $7.19 $17lb

Green Lettuce Head $4.99 $3.15 $5

Romaine Head $4.59 $3.35 $5

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crop from all markets – this is the total demand for each crop that the greenhouse will have to produce

each week in order to supply all of the proposed markets.

Using the total number of units required each week to supply all proposed markets, the chart below

summarizes the monthly activities (planting or harvesting) for each crop and number of units planted or

harvested every week for the entire season. Crops are planted each week throughout the planting season

and harvested each week during the harvesting season in order to provide a steady supply that matches

the projected demand reported by customers.

Table 5: Summary planting and harvesting schedule

Month Activity Crop # of Units April Weekly plantings begin

Baby Spinach 41

Mixed Greens 41

Butterhead Lettuce 41

Romaine 41

Herbs 50

Bell Peppers 30

May Weekly plantings begin Tomatoes 123

Cucumbers 57

Weekly harvesting begins Baby Spinach 41

Mixed Greens 41

Butterhead Lettuce 41

Romaine 41

Herbs 50

Weekly harvesting begins Bell Peppers 30

Tomatoes 123

Cucumbers 57

To achieve these weekly targets, the greenhouse must have sufficient area to accommodate starting

enough plants, weekly, to accommodate the harvests required for all markets. Appendix E contains the

planning charts for space requirements by crop. Table 6 summarizes the growing area required for the

proposed greenhouse. This includes area required for seedling trays, pots, and vertical hydroponic

systems in each month.

Table 6: Growing Area Chart

Production Months Total Area for Trays

Total Area for Pots

Total Area for Vertical Systems

Monthly GA Req

April 73ft2 592ft2 665ft2

May 83ft 592ft2 675ft2

June 83ft2 688ft2 771ft2

July 73ft2 220ft* 688ft2 981ft2

August 73ft2 220ft 688ft2 981ft2

September 73ft2 220ft 688ft2 981ft2

October 73ft2 220ft 688ft2 981ft2 *220ft is a static number for crops grown in bato buckets, as the same plants will continue to yield for the duration of the season

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Hydroponic systems were chosen for the proposed greenhouse design because they are an intensive

growing model that focuses on getting the highest yield out of the smallest space. Bato buckets will be

used to grow tomatoes, bell peppers and cucumbers (please see Part 2 for more details.) From the

demand targets identified for all markets and the space requirements for each crop, the total growing

area for the proposed greenhouse is 2160 square feet. This is double the growing area required for the

first year in order that crop production can expanded in subsequent years. This will also allow area for

workstations, washrooms, a point of sale area, and any other facilities that may be needed within the

greenhouse itself.

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Part 2: Design Planning for a Feasible Greenhouse The previous section has established that there is significant support for a commercial greenhouse in the community. Part 2 explores the key design considerations that impact feasibility of commercial greenhouses. The following analysis will provide design recommendations and further planning details to ensure a feasible greenhouse.

Growing Systems

In order to have a feasible commercial greenhouse in Norman Wells, the proposed design plan must

extend the growing season for as long as possible, while economically managing costs required to

provide adequate heat and light to the crops. The objective of the proposed greenhouse design is to

grow as late into the year as possible: crop production will begin in April and continue until the end of

October.

Table 7: Summary planting and harvest dates by crop Crop Plant Date Harvest Date

Tomatoes May 1st Harvest weekly starting in July

Bell Peppers April 1st

Cucumbers May 1st

Herbs April 1st; plant every subsequent Sunday Harvest weekly starting in May

Baby Spinach April 1st; plant every subsequent Sunday

Mixed Greens April 1st; plant every subsequent Sunday

Butter Lettuce April 1st; plant every subsequent Sunday

Romaine April 1st; plant every subsequent Sunday

The proposed design incorporates two growing systems to achieve the most economical production. As

mentioned, bato buckets will be used to grow tomatoes, bell peppers and cucumbers. The buckets are

filled with a soilless substrate. Nutrients are dripped into the top of the buckets and excess is drained

out the bottom as waste water. The remaining crops will be grown in a vertical hydroponic system made

up of grow towers (when linked together on a custom rack, this system is called a ZipFarm.) Like the

bato buckets, the grow towers pump nutrients through the hydroponic solution.

Bedding plants can be an important addition to any commercial greenhouse operation. As mentioned above, the

total growing area for the greenhouse is 2160 square feet, but this area is much larger than what’s required to grow

the first year crops. This means expending resources to heat an unused space. Using that space to grow trays of

bedding plants will generate $7-9 per square foot and ensure that valuable greenhouse space does not go to waste

Another option, if capital funding is available, would be to install separate closed system growing units that can

produce crops all year-round.

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Considering the demand requirements of the proposed markets and the space required for the

proposed systems, the total growing area for the proposed greenhouse is 2160 square feet. This is

double the space for the first year of production, but it means there is room for expansion

Glazing and Framing

In addition to the crop type and space requirements discussed above, greenhouse design must consider

the local conditions in order to create and maintain an optimal growing environment. The glazing and

framing materials were chosen after a thorough consideration of Norman Wells’ two most serious

challenges: high shipping costs and cold climate.

Table 8: Glazing and Framing Recommendations

Item Description Transportation Construction Temperature

Kit 30’ x 72’ x 18’ arched roof greenhouse kit with 10ft sidewalls, twin wall polycarbonate end walls, double door entryway

Will transport easily in one shipment, reducing transportation costs

Designed for simple design, reducing construction costs

Glazing Double inflated 6mm polyethylene glazing

Much lighter than triple or double polycarbonate

Less likely to be damaged during installation, draping process can be done by the grower, avoiding high construction costs

Adequate R-value (1.7), less prone to condensation issues

Framing Galvanized steel Fairly light for its strength – less support framework is required – reducing transportation costs

Very sturdy, generally has less support framework, reducing construction costs

Casts minimal shadow

The proposed greenhouse would be a kit consisting of galvanized steel covered with polyethene glazing,

except for two polycarbonate end walls. A triple or double wall of polycarbonate glazing offers the best

insulating capability, however, it scratches easily and may not transport well. Also, if it is not properly

installed, it is prone to serious condensation issues, which can cause fungal disease that wipes out crops

quickly. Conversely, an inflated double wall of 6 mm polyethylene film has a similar R-value (insulating

property) of 1.7 to a double wall of polycarbonate, but it is much lighter and damage-resistant.

One disadvantage of poly film is that it starts to become opaque over time, reducing light transmission

and requiring replacement every 3-5 years. Still, the labour rate for replacement should be affordable

because it is easy to re-glaze – many growers install the glazing themselves.

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Temperature Needs

Heating the greenhouse in Norman Wells is not only the largest annual fixed expense, but it is also the

key to optimal germination rates and even plant growth. Planning for this cost is critical to a commercial

greenhouse’s success. Propane and natural gas are the typical fuel options for greenhouses, however

these options are not available in Norman Wells, where heating oil is the primary fuel source. Seedlings

will be started in the greenhouse in April and plantings will continue into September –Table 9 provides

the average estimated fuel consumption per month.

Table 9: Monthly Fuel Consumption Estimate

These estimates are general projections. The greenhouse will likely only need 24 hour heat in April. In

May, September and October it will be limited to overnight and in the early morning.

The most common approach for heating commercial greenhouses is to use forced air units and fans to

circulate the warm air. The most efficient recommendation for a heating system is closed-looped water

radiant heating. The initial investment will be especially high, because, as mentioned, heating fuel is not

the norm for greenhouses. While Norman Wells has one of the lowest commercial heating fuel prices, it

is still subject to high electricity rates and long winters. Once installed, radiant heating can reduce the

monthly heating bill by thirty percent.

Table 10: Radiant Heat vs Forced Air

Radiant Heat

Advantages Disadvantages

1/3 the fuel cost of forced air Initial investment is five times more than forced air

Direct contact with soil means Increased nutrient uptake An additional room (the storage room) would be necessary to house the boiler

Consistent temperatures equals more even crop growth

Different temperature zones for flexible growing schedules

Shorter production times

Forced Air

Advantages Disadvantages

Minimal initial investment It has the highest energy costs out of any system

Situated in the greenhouse, the units are hung from rafters

It is the most inefficient system, and needs additional fans to circulate the air around the greenhouse

Hot air blown across the plant canopy is not ideal, and there is no additional heat being directed at the soil, where it is needed the most.

Month Average Minimum Temperature

litres/Month Monthly Fuel Projection

April -11.1 800 $1.20 * 800 = $960

May .6 325 $1.20 *325 = $390

June 9.3 150 $1.20 * 150 = $180

July 11.5 150 $1.20 * 150 = $180

September 8.4 150 $1.20 * 150 = $180

October -7.7 325 $1.20 * 325 = $390

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The system includes rubber tubing that circulates hot liquid – water or glycol are options – to distribute

heat. The tubing is laid underneath a concrete floor and through benches that will support seedling trays

and bato buckets, to ensure seedlings are receiving enough heat for optimal germination. The benches

would be arranged along either side of the greenhouse, with the vertical growing system running

through the middle. The in-floor heating, combined with the radiant heating benches, will ensure that

the soil is at 21C and the air is at 16C when the outside temperature is around -13 outside. A unit heater

is recommended for back-up for when the temperature drops any lower.

Light Needs

Some greenhouse operations make use of supplemental light to extend the season or to grow year-

round. The structure proposed for Norman Wells will transmit sufficient sunlight to establish seedlings in

the early part of the season. In October, the sun does not rise until 9am and it sets at 8pm.

Supplemental light shouldn’t be necessary, however, the grower may see a decrease in the final month

yields.

By June, Norman Wells will have 24 hours of sunlight and the use of shade cloths will be essential for the

cold hardy crops. Shade cloths should also be hung from both side walls in the evening to give all the

crops a break from the sunlight. A typical strategy for shade cloths is to build a rack that the shade cloth

is draped over, and the plants can grow underneath the cloth. This is a good option for the plants

growing in the vertical system.

Water Needs

The current commercial rate for water in Norman Wells is .0122 cents/litre. A basic industry accepted

standard for water consumption in greenhouses is 7-8 litres per square metre of growing area per day.

The chart below gives the monthly estimates for water consumption for the greenhouse growing

season.

Table 11: Water Consumption Estimate Chart

Energy Needs Fuel and electricity rates are the most cost prohibitive aspects of greenhouse production. Wherever

possible, it is advisable to invest more money in energy efficient infrastructure up front and reap the

benefits of a lower monthly energy consumption. This does require significant capital funding at the

outset.

Month Monthly GA Estimated consumption

April 665ft2 $60.51

May 675ft2 $61.48

June 771ft2 $72.27

July 981ft2 $89.80

August 981ft2 $89.80

September 981ft2 $89.80

October 981ft2 $89.80

Total: $553.46

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Electrical needs are estimated to consume approximately 10 – 15 percent of a growers total energy bill.

The proposed greenhouse operates using three main systems: hydronic radiant heating, drip irrigation,

and forced air ventilation. Table 11 outlines the electricity used by each system.

Table 12: Energy Use by System Item Rate of Use # of

Systems Cost Per Hour Annual Projected

Energy Costs

Hydronic radiant heating Fulltime heating in spring and winter 2 $.91/hr $2628

Unit Heater Back up for temperature drops 1 $4.40/hr $88

Drip irrigation 15 minute drip cycle twice a day 2 $3.52/hr $739.20

Forced air ventilation In summer one air exchange per minute 1 $0.80/hr $900

In winter 3 per hour

Total: $4355.20

The energy use by these systems accounts for the minimum energy use for the greenhouse operation. If

additional systems and appliances are added – for example, a computer system, a cash register, lights,

power outlets, etc. – they will need to be factored in to the overall projected energy use.

The design recommendations in this section are closely tied to the local conditions and the needs of the

crops that will be grown in the proposed greenhouse. A careful design outline has provided the

necessary information to account, in detail, for all costs associated with the construction and operation

of the proposed greenhouse operation. The next section will present a snapshot of the expected costs

and revenues.

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Part 3: Accounting for a Feasible Greenhouse The previous section outlined the most efficient greenhouse design for the condi tions in Norman Wells . Part 3 identifies the proposed greenhouse’s expected costs and possible revenue sources. The goal is to propose a greenhouse with balanced costs and revenues by limiting costs and maximizing efficiency .

Start-up Costs

The start-up costs for the proposed greenhouse include the purchase of all materials, systems,

equipment, supplies and construction costs (including labour). Table 12 outlines, in detail, the start-up

costs associated with the proposed greenhouse.

Table 13: Start-up Costs Category Item Cost*

Greenhouse structure GrowSpan Series $17,104.55

End Frame Kit $1,588 * 2 = $3,176

Clad kit $1576.56 * 2 = $3,153.12

Rafter kit, posts $468.31 * 6 = $2,809.86

Rafter Support $207.42 * 5 = $1,037.10

Dbl swinging door $859.55

Growing System Dutch Bucket System $8,843

Integrated Panel $2,459.45

Timer $65.17

ZipGrow Commercial Bundle $9,450

ZipGrow Media pulling hook $29.99

Radiant Heating System In-floor & Bench $12,725.60

Fuel Oil Boiler $6,025

Unit Heater Optional for colder nights $1,150.68

Ventilation Fan 20” $189.12 * 4 = $756.48

Slant wall fan $1081.64

Aluminum Shutter $384.90 * 2 = $768.80

Irrigation Seedling watering system $200

Workspace 4’w x 8’L Workbenches $338.34 * 23 = $7781.82

Storage, Harvest and Processing Produce Fridge $13,087

Reusable harvest Containers 20 * $19 = $380

Reusable harvest Containers 20 * $19.95 = $399

Salad Spinner $145

S/S Washbasin work surface $1181

Greenhouse Labour $50-$75 unskilled/skilled labour 260 hrs * $75 = $19,500

ZipGrow Operations Systems Installation

Upstart Farmers Support Package included

N/A

Radiant Heat System Installation

175 man hours – 9-10 days with 2 people working 10 hour days

$75/hr = $13,125

Shipping FarmTek $9,956

ZipGrow Canada $400

Hendrix Restaurant Supplies $335.61

Delta Radiant Heating $1,100

Customs TBD

Total $139,086.42

17

Start-up costs are the largest expense that a greenhouse operation will have to account for. Ideally,

much of this cost would be covered by a funding injection, to reduce the financial burden on the grower

and improve their chances for success. If capital funding to cover start-up costs cannot be found, the

operation may still be feasible, provided the total start-up costs are not exorbitant.

Consumable Costs

Once start-up costs are accounted for, consumable item costs must be considered. This includes all

direct inputs (planting containers, substrate, seeds, etc) and costs associated with sales (packaging for

produce, storage, marketing, etc).

Table 14: Consumable Item Costs Consumable Item Cost Description Cost

Containers Seedling trays $42.20

Growing Media (substrate) Delta 6 Block $360.11

Ziptower FlexiPlugs $69.00

Plugs, cuttings, seed Seed $2,000

Tags, Stakes, Trellis, Etc. Trellis Kit $325.50

Tomato Roller $402

Tomato Clips $66.36

Fertilizer Included in first year hydroponic bundles

Electrode supplies $208.43

Chemicals – Pest Control, PGR Included in first year hydroponic bundles

Total Variable Costs $3,196.17

Fixed Costs

Fixed costs are expenses you pay monthly or annually – the bills. The previous section of this report

estimated fuel use for heating the greenhouse, electricity needs and water needs. These needs translate

directly into estimated fixed costs. The chart below estimates the fixed costs for the proposed

greenhouse during production months – please note, the greenhouse is only in operation for seven of

twelve months. Annual costs have been divided amongst the seven months of operation.

Table 15: Fixed Costs

Expense Monthly Cost Annual Cost

Greenhouse Property Loan Unknown Unknown

Property Taxes $163.57 $1,145

Insurance $357.14 $2,500

Water $571.42 $4,000

Energy $622.17 $4,355.20

Fuel $180-$960 $2,280

Depreciation $871.42 $6,100.15

Labour $500 $2,068

Total $4445.72 - $3265.72 $22,448.35

18

Property Taxes/Leases: a mill rate of 17.62 was used to calculate the estimated property tax of $65,000

Insurance: is a rough estimate for total liability

Water: see Table 12 for a breakdown of water estimates

Energy: estimated total cost for all systems calculated together for the entire season

Fuel: the total cost for natural gas for the season minus 30 percent savings anticipated with radiant

heating system.

Depreciation: projected deprecation value of all equipment divided by expected lifespan.

Labour: The scale of greenhouse proposed in this report is large enough to need seasonal employees.

The range of duties could span the entire season, from planting, to maintenance to harvesting and

delivery. An estimate of 25 hours a week at $20.28/hr was used.

Projected Sales Sales revenue is the profit the greenhouse operation generates from selling produce, and is calculated

annually. Table 17 presents the projected annual revenue from each crop, based on the prices and unit

targets set in the community readiness section.

Table 16: Projected Sales Revenue Chart

See the appendix for the total revenue chart. It denotes the different areas revenue can be sourced

from, which would help offset capital costs.

Crop Price per Unit Total Units Projected Annual Sales

Tomatoes $22lb 704lbs $15,488

Peppers $24/lb 272lbs $6,528

Cucumbers $4.50ea 704 $3,168

Herbs $6/28gr/1oz 940 1oz bundles $5,640

Baby Spinach $17lb 488lbs $8,296

Mixed Greens $17lb 488lbs $8,296

Butter Lettuce $5 1224 heads $6,120

Romaine $5 1224 heads $6,120

Total projected Sales: $59,656

19

Total Costs and Revenues In its first year, the proposed greenhouse can expect to earn $59,656 in profits from the produce sold. To assess the feasibility of the proposed greenhouse operation, total costs must be compared against total revenues.

Table 17: Total Costs and Revenues Chart Cost Type Cost Amount Revenue Source Revenue Amount

Start-up Costs $139,086.42 Projected Sales $59,656

Depreciation* $7,078.27 Capital Funding $225, 000

Consumable Item Costs $3,196.17 Growing Forward2

Fixed Costs $23,224.15 Northern Foods Development Program

Sales Cost $1,400 Intern Funding

Total Cost: $173,985.01 Total Revenue: $284,656

*Depreciation is a cost that is kept in savings each year to account for any systems or items that break or must be replaced. The amount is calculated by the item’s value and its life expectancy.

Provided a grower is able to raise capital funds from federal, territorial, local and/or private funds, the

proposed greenhouse can be feasibly established and even achieve modest profits in the first year. If

operations are expanded in subsequent years, the grower can expect profits to increase.

20

Part 4: Commercial Greenhouses as Social Enterprises Throughout the NWT, there is considerable interest in the wider social benefits that come from growing food

locally. Commercial greenhouses can be very successful as a social enterprise that aims equally for commercial

success, as well as maximal social benefits for the community.

Local Economies

By expanding the availability of locally produced food, a local greenhouse can displace southern imports,

keeping money in the local economy and reducing dependence on outside suppliers.

During the growing season, the greenhouse will need to hire and train local people to assist with planting,

caring for crops and harvesting. Through partnerships with local agencies, these jobs can offer an opportunity

for local youth, Elders, underemployed individuals or marginalized groups to develop specific agriculture and

technology skills.

Healthy Eating Habits

Greenhouse operators have an opportunity to promote their business while also promoting healthy eating.

Healthy eating and cooking programs could be developed for the school food program. Hosting field trips at

the greenhouse can be an opportunity to introduce children and youth to the basics of growing food.

Greenhouse owners may be able to partner with local organizations access agriculture or health funding and

coordinate healthy food programing, with excess produce from crops being incorporated into the program

budget.

Employees are also a resource for spreading positive eating habits: the influence and knowledge gained

through training and work experience could inspire them to choose fresh produce more often and encourage

their family and friends to do so as well. When other community members see that fresh produce is turning up

on tables and in conversation, they may be interested in trying produce that they had not previously been

familiar with. Growers can offer further benefits by offering discounted CSA memberships to employees.

Sustainable Food Systems

By growing local foods, the greenhouse enterprise supports a locally sustainable food system. This is an

important goal for northern communities, whose ties to southern food sources can often be precarious,

sometimes relying on a single road that can be closed by forest fires, flooding, or weather.

A local greenhouse can also contribute to improving the local food system by teaching planting and growing in

the community. This may be an opportunity to partner with other local organizations to access funds for

programming that encourages local growing. The benefit is that community members will have a source of

food, should they have limited income, or should usual food markets become unavailable in an emergency.

21

Recommendations This report aims to provide a plan for a commercial greenhouse in Norman Wells a qualified grower could

implement. The following are recommendations derived from the feasibility study.

1. Greenhouse Design

The proposed greenhouse is a 30ft by 72ft by 18ft arched greenhouse with 10ft sidewalls,

polycarbonate end walls and double door entryway with a polyethylene glazing.

2. Crop Selection

While the greenhouse design allows for plenty of room for expansion, the recommendation is to start

with 8 -10 crops: tomatoes, bell peppers, cucumbers, basil, cilantro, thyme, baby spinach, mixed

greens, butter lettuce and romaine.

3. Growing Schedule

The greenhouse design and proposed crops would be best served by a growing season that starts in

April and ends in October.

4. Markets

In its first year, the greenhouse is designed to grow enough produce to supply local catering company

(Royal Mackenzie Catering) and a weekly Community Supported Agriculture (CSA) box for about twenty

members. In future years, the CSA membership can be expanded.

5. Heating

Two heating systems have been assessed for feasibility: forced air and radiant heat. If the capital money

is available radiant heat is strongly recommended to reduce energy costs.

6. Growing System

Hydroponic vertical growing towers and bato buckets are recommended because soil is not a readily

available resource in Norman Wells, and shipping enough soil for a greenhouse of this size would be

less efficient than growing without soil.

7. Bedding Plants

Bedding plants are a great source of revenue, as they are sold early in the year at a profit, leaving room

to start other crops. It should be noted that a spring bedding plant sale would compete with the

existing commercial greenhouse’s spring bedding plant sale.

8. Raised Beds

Permafrost zones vary widely in Norman Wells, therefore raised beds would be required for in-ground

growing. While there is high demand for root vegetables, like potatoes, carrots, and onions, raised beds

are not an efficient growing option for a greenhouse that would have to ship soil.

22

APPENDICES Appendix A: Customer demand survey results

Statement Agree OR Strongly Agree

Neutral Disagree OR Strongly Disagree

Very fresh fruits and vegetables are not usually available for me to buy.

70% 15% 15%

I would be willing to pay a little more for very fresh produce. 66% 16% 18%

I will buy fruits and vegetables wherever they are the cheapest, even if the quality is lower.

8% 17% 75%

I think fruits and vegetables should be grown locally. 58% 33% 10%

I would support a local business that sells fresh fruits and vegetables.

95% 4% 1%

Item Very Likely &

Somewhat likely Somewhat unlikely & not likely

Never

Annual flowers for pots and planters 57% 35% 8%

Annual flowers for a flower bed 52% 34% 14%

Perennial flowers 57% 31% 12%

Vegetables for a home garden 62% 29% 9%

Vegetables for a home greenhouse 55% 34% 11%

Herbs 77% 17% 94%

Berry bushes 56% 31% 13%

Shrubs for landscaping 28% 56% 16%

Trees for landscaping 28% 54% 18%

23

Item Always &

often Seldom &

never Top ten crop?

Top five crop?

Beans 62% 38%

Beets 43% 57%

Broccoli 96% 4% Yes Yes

Cabbage 57% 43%

Cauliflower 78% 22%

Cucumbers 86% 14%

Carrots 93% 7% Yes Yes

Eggplant 22% 78%

Garlic 82% 18%

Kale 64% 36%

Kohlrabi 21% 79%

Leek 34% 66%

Lettuce 93% 7% Yes

Mixed Greens 95% 5% Yes Yes

Onions 94% 6% Yes Yes

Peas 80% 20%

Peppers (bell) 92% 8% Yes

Peppers (hot) 55% 45%

Potatoes 91% 9% Yes

Radishes 33% 67%

Spinach 87% 23% Yes

Swiss Chard 30% 60%

Tomatoes 89% 11% Yes

Turnips 54% 46%

Zucchini 65% 35%

Strawberries 92% 8% Yes Yes

Fresh Herbs 83% 17%

24

Appendix B: Customer reported produce demand

Institution Produce Type Weekly Volumes Weekly Revenue

Royal Catering

Company

Tomatoes 10lbs $225

Bell Peppers 5lbs $122

Cucumbers 16 $75

Herbs 13 $81

Baby Spinach 8.8 $150

Mixed Greens 8.8 $150

Butter Lettuce 20 $100

Romaine 20 $100

Mackenzie Mountain School

Tomatoes 4lbs $88

Bell Peppers 2lb $48

Cucumbers 2 $9

Herbs 1 bundle $6

Baby Spinach ½ lb $8.5

Mixed Greens ½ lb $8.5

Butter Lettuce 1 head $5

Romaine 1 head $5

Ramparts

Tomatoes 10lbs $225

Bell Peppers 5lbs $122

Cucumbers 16 $75

Herbs 13 $81

Baby Spinach 8.8 $150

Mixed Greens 8.8 $150

Butter Lettuce 20 $100

Romaine 20 $100

Weekly Veggie Box Delivery (10)

Tomatoes 2lbs * 10 = 20lbs $440

Bell Peppers .5lb * 10 = 5lbs $120

Cucumbers 10 $45

Herbs 2 bundles * 10 = 20 $120

Baby Spinach 1/4lb * 10 = 2.5lbs $42.50

Mixed Greens 1/4lb 8 10 = 2.5lbs $42.50

Butter Lettuce 10 heads $50

Romaine 10 heads $50

25

Appendix C: Projected units-per-week demand for each market

Royal Catering Company CROP Tomatoes Peppers Cucumbers Herbs Baby Spinach Mixed Greens Butter Lettuce Romaine

UNIT Pound Pound Fruit Bundle Pound Pound Head Head

May

Week one 8.8lbs 8.8lbs 20 20

Week two 8.8lbs 8.8lbs 20 20

Week three 8.8lbs 8.8lbs 20 20

Week four 8.8lbs 8.8lbs 20 20

June

Week one 13 8.8lbs 8.8lbs 20 20

Week two 13 8.8lbs 8.8lbs 20 20

Week three 13 8.8lbs 8.8lbs 20 20

Week four 13 8.8lbs 8.8lbs 20 20

July

Week one 10lbs 5lbs 16 13 8.8lbs 8.8lbs 20 20

Week two 10lbs 5lbs 16 13 8.8lbs 8.8lbs 20 20

Week three 10lbs 5lbs 16 13 8.8lbs 8.8lbs 20 20

Week four 10lbs 5lbs 16 13 8.8lbs 8.8lbs 20 20

Aug





Sept





Oct





TOTAL 160lbs 80lbs 256 260 211lbs 211lbs 480 480

26

Mackenzie Mountain School CROP Tomatoes Peppers Cucumbers Herbs Baby Spinach Mixed Greens Butter Lettuce Romaine


May

Week one 1/2lb 1/2lb 1 1

Week two 1/2lb 1/2lb 1 1

Week three 1/2lb 1/2lb 1 1

Week four 1/2lb 1/2lb 1 1

June

Week one 1 1/2lb 1/2lb 1 1

Week two 1 1/2lb 1/2lb 1 1

Week three 1 1/2lb 1/2lb 1 1

Week four 1 1/2lb 1/2lb 1 1

July

Week one 4lbs 2lbs 2 1 1/2lb 1/2lb 1 1

Week two 4lbs 2lbs 2 1 1/2lb 1/2lb 1 1

Week three 4lbs 2lbs 2 1 1/2lb 1/2lb 1 1

Week four 4lbs 2lbs 2 1 1/2lb 1/2lb 1 1

Aug





Sept





Oct






27

Ramparts Grocery CROP Tomatoes Peppers Cucumbers Herbs Baby Spinach Mixed Greens Butter Lettuce Romaine


May





June





July





Aug





Sept





Oct






28

Weekly Veggie Box Delivery CROP Tomatoes Peppers Cucumbers Herbs Baby Spinach Mixed Greens Butter Lettuce Romaine


May





June





July





Aug





Sept





Oct






29

Appendix D: Projected units-per-week demand for all markets

CROP Tomatoes Peppers Cucumbers Herbs Baby Spinach Mixed Greens Butter Lettuce Romaine

UNIT TYPE Pound Pound Fruit Bundle Pound Pound Head Head

May

1st Week 20.3 20.3 51 51

2nd Week 20.3 20.3 51 51

3rd Week 20.3 20.3 51 51

4th Week 20.3 20.3 51 51

June

1st Week 47 20.3 20.3 51 51

2nd Week 47 20.3 20.3 51 51

3rd Week 47 20.3 20.3 51 51

4th Week 47 20.3 20.3 51 51

July

1st Week 44lbs 17lbs 44 47 20.3 20.3 51 51

2nd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

3rd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

4th Week 44lbs 17lbs 44 47 20.3 20.3 51 51

Aug

1st Week 44lbs 17lbs 44 47 20.3 20.3 51 51

2nd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

3rd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

4th Week 44lbs 17lbs 44 47 20.3 20.3 51 51

Sept

1st Week 44lbs 17lbs 44 47 20.3 20.3 51 51

2nd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

3rd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

4th Week 44lbs 17lbs 44 47 20.3 20.3 51 51

Oct

1st Week 44lbs 17lbs 44 47 20.3 20.3 51 51

2nd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

3rd Week 44lbs 17lbs 44 47 20.3 20.3 51 51

4th Week 44lbs 17lbs 44 47 20.3 20.3 51 51

TOTAL 704lbs 272 704 940 487.2 487.2 1224 1224

30

Appendix E: Space requirement by crop

*space requirements are rounded up to non-decimal values

Tomatoes

Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required

1st Week 44lbs 1 2.64lb/ft2 17ft

68ft 2nd Week 44lbs 1 2.64lb/ft2 17ft

3rd Week 44lbs 1 2.64lb/ft2 17ft

4th Week 44lbs 1 2.64lb/ft2 17ft

Harvest Date: June Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Harvest Date: July Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Harvest Date: August Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Bell Peppers

Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required

1st Week 17lbs 1 .6lb/ft2 29ft

116ft 2nd Week 17lbs 1 .6lb/ft2 29ft

3rd Week 17lbs 1 .6lb/ft2 29ft

4th Week 17lbs 1 .6lb/ft2 29ft










4th Week 17lbs 1 .6lb/ft2 29ft Harvest Date: August Units Harvested RPB YPF GA Per Harvest Monthly GA Required





31

Cucumbers Harvest Date: July Units Harvested RPB YPF GA Per Harvest Monthly GA Required

1st Week 44 1 5 fruit/ft 9ft

36ft 2nd Week 44 1 5 fruit/ft 9ft

3rd Week 44 1 5 fruit/ft 9ft

4th Week 44 1 5 fruit/ft 9ft

Harvest Date: Aug Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Harvest Date: Sept Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Harvest Date: Oct Units Harvested RPB YPF GA Per Harvest Monthly GA Required





Herbs


1st Week 47 1 2 bundles/ft 24ft/8ft = 3 towers 96ft of vertical growing area = 12 towers per month = 12 * 4ft2 = 48ft2

2nd Week 47 1 2 bundles/ft 24ft/8ft = 3 towers

3rd Week 47 1 2 bundles/ft 24ft/8ft = 3 towers

4th Week 47 1 2 bundles/ft 24ft/8ft = 3 towers





















32

Baby Spinach Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required

1st Week 24 1 .5lb/ft 48ft/8ft = 6 towers 192ft of vertical growing area = 24 towers per month = 24 * 4ft2 = 96ft2

2nd Week 24 1 .5lb/ft 48ft/8ft = 6 towers

3rd Week 24 1 .5lb/ft 48ft/8ft = 6 towers

4th Week 24 1 .5lb/ft 48ft/8ft = 6 towers


























33

Mixed Greens Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required









4th Week 24 1 .5lb/ft 48ft/8ft = 6 towers Harvest Date: July Units Harvested RPB YPF GA Per Harvest Monthly GA Required




4th Week 24 1 .5lb/ft 48ft/8ft = 6 towers Harvest Date: Aug Units Harvested RPB YPF GA Per Harvest Monthly GA Required















34

Butter Lettuce Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required

1st Week 51 1 2 heads/ft 26ft/8ft = 4 towers 104ft of vertical growing area = 16 towers a month = 16 * 4ft2 = 64ft2

2nd Week 51 1 2 heads/ft 26ft/8ft = 4 towers

3rd Week 51 1 2 heads/ft 26ft/8ft = 4 towers

4th Week 51 1 2 heads/ft 26ft/8ft = 4 towers

Harvest Date: June Units Harvested R1PB YPF GA Per Harvest Monthly GA Required



















4th Week 51 1 2 heads/ft 26ft/8ft = 4 towers Harvest Date: Oct Units Harvested RPB YPF GA Per Harvest Monthly GA Required





35

Romaine Harvest Date: May Units Harvested RPB YPF GA Per Harvest Monthly GA Required






























36

Appendix F: Space Requirements for Seedling Trays

Crop: Tomato Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 68ft 1 1ft 50 cell 2 * 1.6ft2 4ft2

Crop: Bell Pepper Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 116ft 1 1ft 50 cell 3 * 1.6ft2 5ft2

Crop: Cucumber Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 36ft 1 1.5ft 24 cell 1 * .88ft2 1ft2

Crop: Herbs Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 96ft 1 .5ft 72 cell 3 * 1.6 5ft2

June 96ft 1 .5ft 72 cell 3 * 1.6 5ft2

July 96ft 1 .5ft 72 cell 3 * 1.6 5ft2

August 96ft 1 .5ft 72 cell 3 * 1.6 5ft2 September 96ft 1 .5ft 72 cell 3 * 1.6 5ft2

Crop: Baby Spinach Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

June 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

July 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2 August 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

September 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

Crop: Mixed Greens Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2 June 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

July 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

August 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

September 192ft 1 .15ft 72 cell 18 * 1.6ft2 29ft2

Crop: Butter Lettuce Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

June 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

July 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

August 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

September 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

Crop: Romaine Planting Month Monthly GA Req RPB IRS Tray Size Total Trays Total ft2/month

May 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

June 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

July 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

August 104ft 1 .7ft 50 cell 3 * 1.6 5ft2 September 104ft 1 .7ft 50 cell 3 * 1.6 5ft2

37

Appendix G: Detailed Start-up Costs

Category Item Cost* Projected Lifespan in years

Depreciation **

Greenhouse structure GrowSpan Series $17104.55 50 $34.30

End Frame Kit $1,588 * 2 = $3176 10-15 $317.60

Clad kit $1576.56 * 2 = $3153.12 10-15 $315.30

Rafter kit, posts $468.31 * 6 = $2809.86 10 – 15 $281

Rafter Support $207.42 * 5 = $1037.10 10 – 15 $103.70

Dbl swinging door $859.55 10 – 15 $86

Growing System Dutch Bucket System $8843 8 $1105.38

Integrated Panel $2459.45 5 $492

Timer $65.17 5 $13.03

ZipGrow Commercial Bundle $9,450 10-20 $1181.25

ZipGrow Media pulling hook $29.99 5 $6

Radiant Heating System

In-floor & Bench rubber tubing $12,725.60 20+

$636.28

Fuel Oil Boiler $6,025 20+ $301.25

Unit Heater Optional for colder nights $1,150.68 15 $76.71

Ventilation Fan 20” $189.12 * 4 = $756.48 5 $151.40

Slant wall fan $1081.64 5 $216.40

Aluminum Shutter $384.90 * 2 = $768.80 10 – 15 $76.90

Irrigation Seedling watering system $200 5 $40

Workspace 4’w x 8’L Workbenches $338.34 * 23 = $7781.82 10 -15 $101.47

Storage, Harvest and Processing

Produce Fridge $13,087 10 -15 $1308.70

Reusable harvest Containers 20 * $19 = $380 8 $47.50

Reusable harvest Containers 20 * $19.95 = $399 8 $49.87

Salad Spinner $145 8 $18.13

S/S Washbasin work surface $1181 10 -15 $118.10

Greenhouse Labour $50-$75 unskilled/skilled labour 260 hrs * $75 = $19,500 N/A N/A

ZipGrow Operations Systems Installation

Upstart Farmers Support Package included

N/A N/A N/A

Radiant Heat System Installation

175 man hours – 9-10 days with 2 people working 10 hour days

$75/hr = $13,125 N/A N/A

Shipping FarmTek $9,956

ZipGrow Canada $400

Hendrix Restaurant Supplies $335.61

Delta Radiant Heating $1,100

Customs TBD

Total $139,086.42 $7078.27

38

Sales Cost Chart Sales Costs Item Cost

Shipping/Delivery Gas $200/month

Packaging Fixed Cost, see above

Storage Produce Fridge Start-up Cost

Marketing Use social media Free

Total Sales Costs $200

Consumables Cost Chart

Consumable Item Cost Item Cost

Containers Seedling trays $2.11 * 20 = $42.20

Growing Media (substrate) Delta 6 Block $5.55 * 46 = $360.11

Plugs, cuttings, seed $2000

Tags, Stakes, Trellis, Etc. Trellis Kit $32.55 * 10 = $325.50

Tomato Roller $1.34 * 300 = $402

Tomato Clips $22.12 * 3 = $66.36

Fertilizer Included in first year hydroponic bundles

Chemicals – Pest Control, PGR Included in first year hydroponic bundles

Total Variable Costs $3196.17

39

Special thanks

Special thanks to our funders and partners on this project. Photos courtesy of Villiam Svalo of Vineland

Research.

Photo Credit: Northern Farm Training Institute

For more information please contact

Jessica Dutton

Community Research Coordinator

South Slave Research Centre

50 Conibear Crescent, PO Box 45, Fort Smith, NT X0E 0P0

Tel: (867) 872-7084 Fax: (867) 872-5024

[email protected]

mailto:[email protected]

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